Business is cutthroat, government should stay out of it. And especially not direct state subsidies or state investments in this industry any more. Let the private sector figure it out
New Energy Vehicles (NEVs) in China
- Thread starter supercat
- Start date
To be honest, I don't even know what to think anymore. I do know that low prices will help consolidate the car industry in china which is so badly needed giving the large amount of car players in the industry and inefficiencies its creates. At the same time I'm not sure how low the price war has to go, since if it gets too low to the point where even the most competitive car companies start taking a hit on their profit margin and capital then it might affect them as well instead of wiping out just the uncompetitive car companies.. So a balance is needed. Maybe the prices we have now is okay, since many smaller players are already being affected and closing down while other bigger uncompetitive players are already struggling and losing market share rapidly. So I think there shouldn't be anymore price cuts, else it might jeopardise the industry which is what the government seem to be worried about.
I don't think that would cut it as far as the CPC is concerned.
After all, one of the best things about the PRC is the fact that it generally doesn't leave the fucking capitalist ghouls to "figure it out". In socialism the interests of society trump (and should trump) those of private business.
While that is a general observation, Micheal90's comment about the need for efficiency and consolidation in the automotive industry is also prescient.
Which means, I think a balance has to be struck, and this means NOT a full blown price war again. At least that is my personal take on this at this juncture. There is a reason literally everyone is jumping at BYD right now.
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That is not going to happen and that should not be happening in China. Historically lucrative Chinese business tends to evolve into destructive local warfare. Just look at a recent example of Alibaba vs Tencent before government intervention. In fact, the Chinese industrial backbones are mostly state-owned giants plus state-owned research institutes and universities. "Capitalism with Chinese characteristics" is very different from "Capitalism with American characteristics". The Chinese public would not allow billionaires or oligarchs or warlords to ride on top of their heads and shoulders again.
Maybe Chinese government should just take majority stakes in all major private Chinese companies, so they can have better control over them. Think that will be the best way to avoid what you mention about private companies CEOs becoming too big/powerful.
China have already had the golden share to do that.
Will this be able to "wedge" CN and Europe? Like Reverse the "warming up" of ties talks?
Any update for May?
supercat
Colonel
The new Hongqi HS9 PHEV looks good.
Most of us probably already know this.
Geely is doing well recently.
The Chery Qq Domi is cute and starts at approx. $8,3000.